Exploring DeFi in 2022: The Rise of DAO

The debate over over-centralization and decentralization has always been a sensitive topic. Many people believe that decentralization should be an important part of the cryptocurrency world because it ensures that the platform is not controlled by arbitrary authorities or external third parties.

Resistance to censorship and central authority is important because it means that blockchain-based platforms can enter the market and provide support to users in government-unfriendly areas.

In an increasingly connected world, where business and the exchange of ideas cross borders, decentralization has become more important to promote innovation and efficiency, especially in the case of the Internet Be described as “The largest distributed communication system in human history.”

Decentralization promotes transparency and security-these elements will only become more important as the crypto market sees massive capital flows. The allegations of insider trading in the OpenSea NFT market have led some to argue for greater decentralization in the NFT world.

“Regardless of whether the allegations of insider trading are true or not-OpenSea needs to use this as a catalyst to build a more decentralized platform,” Robert Leshner, co-founder of compound finance famous In September.

DAO is becoming an integral part of crypto projects interested in democratic governance

In terms of community participation and participation, decentralization is particularly beneficial to the project. Decentralized projects are turning to DAO to authorize users to participate in the governance process through a democratic voting system in which participants create proposals and vote on different initiatives.

It turns out that decentralized governance is very popular even in the traditional financial world. Private venture capital firm Andreessen Horowitz Announced in August It is “open source our token delegation plan” to share resources such as legal agreements and other standards to promote decentralization.

Many blockchain projects are achieving success through the DAO model to promote community participation. The Maker platform relies on the DAO framework to guide the development of the protocol, where MKR holders can vote on a series of issues, from changing protocol fees to Even forced The platform was closed in an emergency.

the other is Phoenix Road, A set of protocols based on digital identity, involving identity verification, payment and decentralized governance. Voting requires 1,000 pledged PHNX, and the proposal creator needs to pledge 10,000 native PhoenixDAO tokens. Members can vote and propose on a wide range of issues from platform governance to leadership, marketing, ecosystem participation and reward structures.

Unique Phoenix DAO Unlike other DAOs, it is completely self-sustaining through revenue-generating products and does not rely on donations. In order to further increase transparency, all expenditures voted by members are posted on the operating budget page.

DAO helped solve many problems that plagued the centralized structure

Phoenix’s open participation and governance framework allows anyone in the world to participate. The democratized voting process ensures that the will of the majority (not just a few developers or leaders) determines the direction of the platform.

Due to its bureaucratic nature, disputes within a centralized structure are often difficult to alleviate. Platforms like PhoenixDAO make dispute resolution easy, because any disagreement can be finally resolved by voting.

As proven by platforms such as PhoenixDAO, DAO’s unique advantages in governance, transparency, and participation make this model an influential model in 2022 and beyond. Many people are beginning to believe that DAO can become an indispensable part of future work and human organizations in general.

DAO also seems to continue to make waves in the traditional business world.

Joseph Raczynski predicted at the Thompson Reuters Emerging Legal Technology Forum in 2021 that the DAO will have a major sports franchise in the next four years. How to write later “Imagine that you and others can vote on players acquired by the New York Giants professional football team… However, by having New York Giants DAO Or whatever its name…”

Decentralized governance will only continue to be popular, because the agreement hopes to use the collective knowledge and enthusiasm of members to promote growth and interaction, firmly considering DAO as an important part of the already vibrant cryptocurrency ecosystem.

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